PETIT ON FOR TARIFF DETERMINATION LRMINATION

1320 MW COAL FIRED POWER PLAN I AT JAMSHORO

JAMSHORO POWER COMPANY LIMITED (GENCO — I)

1

• SEPTEMBER, 2014

- • •

1 FINANCIAL ADVISORS

TECHNICAL ADVISORS

GRANT THORNTON CONSULTING (PVT) LIMITED ELAN PARTNERS (PVT) LIMITED Financial Advisors & Management Consultants Energy, Environment & Economics Solutions

Content

PARTICULARS OF PETITIONER

TARIFF PETITION

3

1 Project Background and Rationale

3

2 Project Profile

5

3 Project Cost

7

4 Financing Plan

10

5 Project Tariff

11

6 Indexations

14

7 General Assumptions

14

8 Determination Sought

16

ANNEXURE A— REFERENCE GENERATION TARIFF 17

ANNEXURE B — DEBT SCHEDULE 18

ANNEXURE C — CAPITAL COSTS 21

Particulars of Petitioner

COMPANY PARTICULARS

Name of Company Jamshoro Power Company Limited

Mohra Jabal Dadu Road, Jamshoro, Pakistan

+92 22 202 1230

+92 22 202 1240

Registered Address

Telephone

Facsimile

REPRESENTATIVES OF COMPANY

Chief Executive Officer

Finance Director

PROJECT TEAM

Financial Advisors Grant Thornton Consulting (Pvt) Limited

Elan Partners (Pvt) Limited

Technical Advisors

Mr lftikhar Aziz

Mr Shamsul Arfin

Page 2 of 21

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Tariff Petition

1 PROJECT BACKGROUND AND RATIONALE

1.1

Pakistan is facing chronic power shortages across industrial, commercial and residential

sectors, which severely hampers the economic growth of the country. The growing

dependence on the expensive imported furnace oil for power generation has added to the

difficulties to consumers' at large in meeting their electricity expenditure on the one hand,

and resulting in the ever increasing circular debt on the other hand. Resource constraint has

heavily hindered investment in the power generation sector, which has consequently led to

widespread periods of load shedding and power interruption, specifically for industrial and

commercial activities, resulting in lost productivity and public discontent. The country has

an urgent requirement to generate additional power at affordable price to feed into the

national grid.

1.2 The current gap in the supply and demand of electricity in the country requires immediate

addition of base load shoulder and peak load generation in the system, prioritized for

affordable base load generation. The energy sector is currently experiencing an acute and

worsening energy crises, which has a devastating effect on the economy, as well as, the well-

being of the population of the country. In the summers of 2012, this gap in supply and

demand was recorded at 6,600 MW, representing 35% of the electricity demand of the

country at the time. The demand and supply of the country over the period 2009 — 2013,

along with details on the electricity surplus / deficit and the percentage thereof relative to

demand has been tabulated below for reference.

Financial Year Generation Demand Surplus (Deficit) % of Demand 2009 13,637 MW 17,852 MW (4,215) MW 23.61% 2010 12,751 MW 18,467 MW (5,716) MW 30.95% 2011 13,193 MW 18,521 MW (5,328) MW 28.77% 2012 12,320 MW 18,940 MW (6,620 MW 34.95% 2013 13,577 MW 18,827 MW (5,250) MW 27.89%

Source — NEPRA State of Industry Report 2012

1.3 In addition to increasing the generation capacity, it is equally imperative to reduce costs of

generation, for which the government is already pursuing various fuel sources such as solar,

wind, hydropower etc. However, the long gestation period and cyclicality of generation in

the case of hydropower, combined with costly technology and insufficient base load for

sustained generation in the case of solar and wind energy, does not allow for these sources

to be a viable alternative source of fuel. In this scenario, and the fact that gas supply in

Pakistan is diminishing on an exponential scale, coal as a source of electricity generation

remains the only low cost solution for sustained economic growth of the country in the s 11)

Page 3 of 21

medium to long term timeframe. Electricity generation by fuel source has been tabulated

below for reference.

S No Source of Fuel

Hydro

Generation (GWh)

28,047

Percentage Share

30.72%

2 Coal 66 0.07%

3 High Speed Diesel (HSD) 1,854 2.03%

4 Residual Fuel Oil (RFO) 31,869 34.91%

5 Natural Gas 23,931 26.21%

6 Nuclear 4,675 5.12%

7 Mixed / Hybrid 585 0.64%

8 Imported from Iran 259 0.28%

9 Wind 8 0.01%

Total 91,294 100.00%

Source NEPRA Determination Order for IESCO dated June 2013

1.4 In line with the NTDC Generation Expansion Plan 2013 and the National Energy (Power)

Policy approved by Council of Common Interest in August 2013, Government of Pakistan

(GoP) through Ministry of Water and Power aims to increase the share of coal based power

projects, for which it approached the Planning Commission with concept papers for approval

of various coal based power projects. Some of the projects under consideration includes

establishment of 6,600 MW Gadani Power Park, and conversion of the existing power plants

located in Jamshoro and Muzaffargarh to coal based generation.

1.5 Another one of these projects proposed by Ministry of Water and Power is the establishment

of 2x660 MW supercritical coal fired units using blends of sub-bituminous coal and domestic

lignite (the "Project") at Jamshoro, Pakistan, near Kotri Barrage, enabling supply of more

than 20% of the current power shortfall of the country. The Project shall be sponsored and

executed by GENCO Holding Company Limited (GHCL), whereas the implementing agency

shall be Jamshoro Power Company Limited (hereinafter referred to as the "Company" or

"Petitioner" or "JPCL"), a limited company incorporated under the laws of Pakistan, which

shall also be responsible for operations & maintenance of the Project.

1.6 The main objective for the establishment of the Project is provision of adequate facilities for

generation of electricity to meet the current and future requirements for the domestic,

industrial and agricultural sectors in order to support the overall economic development of

the country. The two units combined are expected to be the first of the new coal fired power

plants to be commissioned and shall be able to contribute a gross generating capacity of

1,320 MW, which is equivalent to 20% of the current electricity shortfall, at an approximate

fuel cost of 20% and 30% relative to costs of HSD and RFO, respectively.

1.7 The Feasibility Study for this Project has been completed by US Power Consult LLC as of

September, 2013, and the PC-I has also been compiled and approved by ECNEC. 30% of the

Project shall be financed through equity injected by GoP through GENCO I, whereas the

remaining amount is to be secured through debt financing. To this effect, a significant

portion of the required debt financing has already been arranged through a mix of financing

facilities of Asian Development Bank (ADB) and Islamic Development Bank (IDB), whereas

the remaining amount shall be arranged through commercial debt arrangements. As a

condition precedent for the financing arrangements of ADB and IDB, the Project Tariff needs

to be awarded before initiating the process for EPC contracting.

•

Li Page 4 of 21

1.8 Under the Regulations of Generation, Transmission and Distribution of Electric Power Act

(Act No XL) of 1997 (the "NEPRA Act"), the Authority is mandated to determine the tariffs

and other terms and conditions for the supply of electricity through generation, transmission

and distribution. Consequently, JPCL is required to file a petition for determination of tariff

for the Project (the "Petition") before National Electric Power Regulatory Authority (the

"Authority" or "NEPRA") pursuant to Rule 3 of the NEPRA (Tariff Standards and Procedure)

Rules 1998.

\.e

2 PROJECT PROFILE

2.1 The Project Site is located approximately 20 KM northwest of Hyderabad, and about 150 KM

northeast of Karachi. The Indus River is located approximately 3.5 KM east of the Project

Site. Currently, there are four units having total generation capacity of 880 MW operating at

the Project Site, where Unit 1, commissioned in 1990, initially rated at an output of 250 MW

and is based on RFO as a source of fuel, and Unit 2 to 4, commissioned in 1989 to 1991

respectively, were initially rated at an output of 220 MW each and are based on both Gas

and RFO as sources of fuel. Today, the effective rating of these units has been reduced to

710 MW due to aging factors and delays in Major Overhauls due to non-availability of shut

down time to meet country's demand. A - \\_, fie'

• 2.2 The two supercritical coal fired units proposed to be established under the Project — Unit 5

and Unit 6 — shall be erected south of the existing Unit 4, on an arrangement similar to that

of the existing units, i.e. the components will be placed from west to east including electrical

transformers, turbine hall, boilers, ESPs, FGDs, and stack. The coal receiving and storage yard

will be located to the south of the new generation units, whereas the 100 acres land of ash

pond is located to the northwest corner, adjacent to the power station. The proposed plant

layout has been enclosed below for reference.

Coal Parameters Unit Gross Capacity

Auxiliary Load

Availability Factor

Calorific Value of Sub-Bituminous Coal (LHV)

Calorific Value of Lignite Coal (LHV)

Gross Thermal Efficiency (Sub-Bituminous Coal)

Gross Thermal Efficiency (Blended Coal)

Conversion Factor— Btu per kWh

Conversion Factor— Btu per kCal

Annual Coal Consumption per Unit (Sub-Bituminous Coal) Annual Coal Consumption per Unit (Blended Coal)

660 MW

8.12%

85.00%

5,670 kCal / Kg

3,553 kCal / Kg

43,40%

42.80%

3,412 Btu / kWh

3.97 Btu / kCal

1.718 Mtpa

1.883 Mtpa

2.3 The Project is proposed to be fuelled through a blended mix of lignite procured from Thar

Coalfields and sub-bituminous coal to be imported from a suitable source, on a 20:80 ratio

respectively. Coal shall be delivered to the site primarily through the use of railroad cars,

however provisions are made to receive, unload and store coal through the use of trucks

also. The railroad trains will have five or six locomotives and fifty cars of 50 tonnes capacity

each. Six to seven daily trains of 2,500 tonnes each will be delivered to the site for unloading,

and the unloading system will deliver coal to the storage yard. If required, the unloading

system has the option to deliver the coal directly to the boiler after appropriate crushing,

tramp iron removal, weighing and analysis. However, railway track data is to be investigated

if coal wagon capacity larger than 50 tonnes can be applied to reduce the train schedule.

2.4 Sub-bituminous coal will be imported and unloaded mainly at Port Qasim. In order to be able

to unload a ship within a maximum of 3 days (after which the demurrage fees rise

significantly in cost), the port must have adequate facilities and space for unloading and

storage of the entire contents of the shipment. Whereas, lignite procured from Thar will be

transported by trucks from the mine to the power station, with distance from the mine to

the project site measuring at approximately 150 KM.

2.5 The Project shall be initially utilize imported sub-bituminous coal till such time that

extraction of lignite from Thar commences and is available for commercial use.

Consequently, tariff computation in this petition has been based solely on sub-bituminous

coal. However, it is requested to the Authority that adjustments in thermal efficiency and

fuel price resulting from use of blended coal be allowed, as and when the utilization of

blended coal commences. Assuming the parameters tabulated below, each unit shall require

an input of 1.883 Mtpa in the case of blended coal usage, and 1.718 Mtpa in the case of

100% sub-bituminous coal utilization.

2.6 In order to finalize coal supply arrangements, the Company has initiated the process of

procurement of sub-bituminous coal through flotation of tenders in the international

market, and the Company shall enter into long term Coal Supply Agreement (CSA) with a

single or multiple parties as appropriate to ensure uninterrupted coal supply.

2.7 The Project has an estimated construction time of 48 months, subsequent to

commencement of construction. The estimated life of Project is 30 Years. Project Schedules

have been briefly tabulated overleaf.

Page 6 of 21

Page 7 of 21

Project Schedulero Commencement of Project

Period to Financial Close

Commencement of Construction

Construction Period

Commencement of Operations

Operational Period

01 April 2013

02 Years

01 April 2015

04 Years

01 April 2019

30 Years

3 PROJECT COST

3.1 The Project has been estimated to be established at a total cost of USD 1.637 Billion, or the

equivalent PKR 161.523 Billion, assuming an exchange rate of PKR 98.64 per USD. On a gross

per MW basis, the cost is equal to USD 1.241 Million per MW. For the purposes of the tariff

petition, the Company has, at this stage, relied upon the detailed costs provided in the PC-I

Study, duly rationalized and subsequently approved by ECNEC, which, in turn, has been

based on the Feasibility Study prepared by US Power Consult LLC. The total cost components

of the Project have been tabulated as follows.

Project Cost USD PKR EPC Cost 1,215,686,765 119,915,342,488

Non EPC Cost 165,423,723 16,317,396,048

Development Cost 30,390,736 2,997,742,192

Taxes and Duties 64,940,190 6,405,700,342

Insurance During Construction 9,880,509 974,6].3,365

Financing Fees and Charges 18,753,605 1,849,855,580

Interest During Construction 132,422,321 13,062,137,755

Project Cost 1,637,497,848 161,522,787,770

3.2 The EPC Cost has been further divided into three components — (a) Offshore EPC Cost, which

includes foreign cost components of Site Preparation & Engineering, Handling of Fuel Ash &

Water, and the lump sum amount for Supercritical Boiler, Coal Fired Steam Power Plant, Unit

Transformer, Auxiliary Transformer, other MV / LV Transformers & Equipment, AC / DC

System, Control Equipment & System, Demi Water Treatment Plant, Emission Control Panel

and Spare Parts etc. which have been combined under the head of Thermal Power Station;

(b) Onshore EPC Cost, which includes local cost components of Land for Power Station &

Colony, Site Preparation & Engineering, Handling of Fuel Ash & Water, and Thermal Power

Station; and (c) Freight & Transportation.

3.3 On the basis of a finalized EPC arrangement, the Company would be able to provide firm EPC

costs as quoted from the EPC Contract, and based thereon, shall request Authority to adjust

the tariff ruling accordingly.

EPC Cost USD PKR Offshore EPC Cost 1,086,364,900 107,159,033,736

Onshore EPC Cost 100,829,278 9,945,800,000

Freight & Transportation 28,492,587 2,810,508,752

EPC Cost 1,215,686,765 119,915,342,488

Offshore EPC Cost USD PKR

Site Preparation & Engineering 4,028,400 397,361,376

Handling of Fuel, Ash & Water 132,393,400 13,059,284,976

Thermal Power Station 949,943,100 93,702,387,384

Offshore EPC Cost 1,086,364,900 107,159,033,736

USD PKR

Land for Power Station & Colony 2,139,092 211,000,000

Site Preparation & Engineering 4,409,976 435,000,000

Handling of Fuel, Ash & Water 18,182,279 1,793,500,000

Thermal Power Station 76,097,932 7,506,300,000

Onshore EPC Cost 100,829,278 9,945,800,000

3.4 Non EPC Costs account for a total of USD 0.165 Billion or 10.10% of Project Cost. This cost

head broadly includes the costs of (a) Civil Works & Structure which has been provided to

cover the costs of machine hall, buildings, foundations, and structure for equipment, boilers,

steam turbine generators, ancillary equipment, water treatment plant, and cable tranches

inclusive of cooling water system etc.; (b) Residential Buildings covering the costs of

construction for offices, guest house, staff housing, hostels, mosque etc.; (c) Vehicles to

provide for costs of passenger cars, jeeps, vans, pickups, coasters, and fire fighting vehicles

etc.; and (d) overall erection charges.

3.5 It is requested to the Authority, that a provision for adjustment in the tariff ruling be granted

on account of firm costs incurred, or expected to be incurred, based on finalized EPC contract

arrangements.

Non EPC Cost

USD PKR

Civil Works & Structure 74,218,978 7,320,960,000

Residential Buildings 12,216,139 1,205,000,000

Vehicles 606,245 59,800,000

Erection Charges 78,382,361 7,731,636,048

Non EPC Cost 165,423,723 16,317,396,048

3.6 Development Cost is estimated at USD 0.030 Billion to account for costs of (a) Engineering &

Consultancy, which in turn are estimated at USD 0.018 Billion on the basis of quotations

received by the Company in their process of finalizing the consultants for the task; (b)

Training & Capacity Building to ensure that the staff of the Company is imparted adequate

skills and knowledge for the operations of the plant; and (c) Administration & Management,

which in turn accounts for the costs primarily related to the staff of the Company employed

for the construction period of 48 months for administrative and supervisory responsibilities.

3.7 The Company is of the opinion that it shall have a more accurate representation of the scope

of development, and the associated costs thereof, based on the finalized EPC arrangements,

and requests the Authority for a provision of adjustment in the tariff ruling accordingly.

Development Cost USD PKR

Engineering & Consultancy 18,055,150 1,780,960,000

Training & Capacity Building 5,402,800 532,932,192

Administration & Management 6,932,786 683,850,000

Development Cost 30,390, 6 2,997,742,192

Page 8 of 21

Taxes and Duties USD

3.8 It is requested to the Authority that all Taxes and Duties incurred by the Company as at the

date of commercial operations commencement, on account of procurement of goods and

services for the Project, be allowed as part of the Project Cost. However, for the purposes of

the Petition, Taxes and Duties have been computed on imported equipment at the rate of

6% to cater for custom duties, surcharge etc.

Handling of Fuel, Ash & Water 7,943,604 783,557,099

Thermal Power Station 56,996,586 5,622,143,243

Taxes and Duties 64,940,190 6,405,700,342

3.9 Insurance During Construction has been computed as 1% of 70% of Capital Costs, including

EPC Cost, Non EPC Cost and Development Cost, in line with the ruling of the Authority in the

matter of Upfront Tariff for Coal Fired Power Projects. However, the same is requested to

be allowed to be adjusted as per the actual costs incurred at the time of COD.

Insurance During Construction USD

PKR

Insurance During Construction

9,880,509

974,613,365

Insurance During Construction

9,880,509

974,613,365

3.10 Financing Fees & Charges have been estimated based on costs expected to be incurred, and

broadly includes costs associated with Arrangement Fee equal to 1% of debt, LC Charges

equal to 0.15% per annum and a LC retirement cost of 0.10%, and Commitment Charges of

0.15% per annum applicable on the relevant debt financing facilities.

3.11 It is requested to the Authority that Financing Fees & Charges be adjusted on subsequent

revision in accordance with the actual costs incurred.

Financing Fees and Charges USD PKR Arrangement Fees 11,462,485 1,130,659,514

LC Charges 5,207,668 513,684,409

Commitment Charges 2,083,452 205,511,656

Financing Fees and Charges 18,753,605 1,849,855,580

3.12 Interest During Construction has been computed on the basis of cost drawdowns estimated

in the feasibility study. It has been assumed that Debt and Equity injection shall be made on

a pro rata basis. Similarly, debt injection shall be made proportional to the total share of

each debt facility. Interest During Construction over a period of 48 months is thus estimated

to be USD 0.132 Billion.

3.13 The Company requests the Authority that Interest During Construction be allowed as a pass

through based on actual expenses incurred, and the actual drawdown schedule.

Interest During Construction

USD

PKR Interest During Construction

132,422,321

13,062,137,755

Interest During Construction

132,422,321

13,062,137,755

Page 9 of 21

cf0

4 FINANCING PLAN

4.1 The Project Cost of USD 1.637 Billion for the establishment of the 2x660 MW Coal Fired

Power Project at Jamshoro has been financed through a mix of debt and equity financing in

accordance with a Debt to Equity Ratio of 70:30.

Capital Structure USD PKR

Equity 30.00% • 491,249,355 48,456,836,331

Debt 70.00% 1,146,248,494 113,065,951,439

Project Cost 100.00% 1,637,497,849 161,522,787,770

4.2 Equity for the Project shall be injected by the Government of Pakistan through the holding

company, GENCO I, amounting to USD 0.491 Billion.

4.3 For the establishment of this Project, GoP has applied to Asian Development Bank (ADB) for

two loans from ADB's Ordinary Capital Resources (OCR) and another from ADB's Special

Funds (SF). GoP has also applied to Islamic Development Bank (IDB) for a loan of USD 0.220

Billion to finance part of the Project Cost. The arrangement for remaining debt financing to

make up a total of 70% of the Project Cost is under process.

4.4 The first loan secured though ADB, namely OCR Loan 1, amounts to USD 0.840 Billion with a

grace period of 5 years, biannual repayment period of 25 years, commitment charges of

0.15% per annum, and a financing rate of 6 Month LIBOR + 0.50% per annum. Similarly, the

second loan secured through ADB, namely OCR Loan 2, amounts to USD 0.030 Billion with a

grace period of 10 years, biannual repayment period of 10 years, commitment charges of

0.15% per annum, and a financing rate of 6 Month LIBOR + 0.40% per. annum. Moreover, the

third loan secured though ADB, namely SF Loan, in various currencies is equivalent to

19,380,000 Special Drawing Rights (SDR) which in turn is equal to USD 0.030 Billion assuming

an exchange rate of USD 1.5425588 per SDR. The loan has a grace period of 5 years, biannual

repayment period of 20 years, and a financing rate of 2.00% per annum.

4.5 As per the terms of the financing agreement with ADB for the three loans, GoP shall relend

the proceeds of the (a) OCR Loan 1 on the basis of a 5 years grace period, 25 years biannual

repayment period, commitment charges of 0.15% per annum, and a financing rate of 6

Month LIBOR + 4.50%; (b) OCR Loan 2 on the basis of a 10 years grace period, 10 years

biannual repayment period, commitment charges of 0.15% per annum, and a financing rate

of 15% per annum; and (c) SF Loan on the basis of a 5 years grace period, 20 years biannual

repayment period, and a financing rate of 15% per annum.

4.6 Similarly, GoP secured financing of USD 0.220 Billion from Islamic Development Bank with a

grace period of 4 years, biannual repayment period of 15 years, and a financing rate of 6

Month LIBOR + 1.15%. It is assumed that GoP shall relend the proceeds of the said loan over

the same terms and conditions to the Project.

4.7 The remaining USD 0.026 Billion, to make up total debt as 70% of the Project Cost, is

proposed to be arranged through financial institutions with a grace period of 4 years,

biannual repayment period of 10 years, commitment charges of 0.15%, and a financing rate

of 6 Month LIBOR + 4.50%. It is requested to the Authority that the resulting tariff be allowed

to be adjusted on the basis of actual financing terms agreed at the time of financial close of

the Project. ---64/)d

Page 10 of 21

4.8 Details of debt financing for the Project, composing of various loan arrangements, have been

tabulated below for reference. The following table consists of the financing terms secured

by the Project (including the terms and conditions for relending by GoP).

Debt Financing

USD PKR

ADB OCR Loan 1

ADB OCR Loan 2

ADB SF Loan

IDB Loan

Commercial Loan

Total Debt

73.28%

2.62%

2.61%

19.19%

2.30%

100.00%

840,000,000

30,000,000

29,894,790

220,000,000

26,353,704

1,146,248,494

82,857,600,000

2,959,200,000

2,948,822,040

21,700,800,000

2,599,529,399

113,065,951,439

Loan

Amount (USD) Grace* Tenor Charges Rate

ADB OCR Loan 1

ADB OCR Loan 2

ADB SF Loan

IDB Loan

Commercial Loan

840,000,000

30,000,000

29,894,790

220,000,000

26,353,704

5 Years

10 Years

5 Years

4 Years

4 Years

25 Years

10 Years

20 Years

15 Years

10 Years

0.15%

0.15%

0.15%

4.83%

15.00%

15.00%

1.48%

4.83%

* Grace Period for OCR Loan 1, OCR Loan 2, and ADB SF Loan assumed to commence from 2014, whereas the

same for IDB Loan and Commercial assumed to commence from 2015, with COD assumed at April 01, 2019.

5 PROJECT TARIFF

5.1 The Project Tariff has a typical two part structure with an Energy Purchase Price (EPP) for

the energy actually dispatched based on the kWh offtake, and a Capacity Purchase Price

Charge (CPP) based on the capacity available for dispatch.

5.2 The reference generation tariff table, annexed herein as Annexure A, is the result of a

detailed techno financial analysis. The levelized tariff is based on a notional 85% plant factor

as per the Authority's decision in the matter of Upfront Tariff for Coal Fired Power Projects

dated June 26, 2014. The Project Tariff has been computed to be PKR 8.3132 per kWh or USC

8.4278 per kWh on the basis of general assumptions contained in Section 6 and elsewhere.

Total Tariff

PKR per kWh US4 per kWh Project Tariff Energy Charge Capacity Charge*

PKR per kWh PKR per kW per Month

Year 1— 30 5.1835 1,941.9695 3.1297 8.3132 8.4278

* Capacity Charge at 85% Plant Availability Factor

5.3 The Energy Charge, based on the actual net electrical output measured on kWh, consists of

variable cost components including Cost of Fuel, Cost of Ash Disposal, Cost of Limestone,

Variable O&M — Foreign, and Variable O&M — Local. The individual cost components,

levelized over a period of 30 years, have been detailed in the table below.

Variable O&M Foreign Local Energy Charge Fuel Ash`Disposal Limestone

PKR per kWh

5.1835 4.5045 0.2200 0.0900 0.3559 0.0130

Page 11 of 21

Fuel Cost Parameters Plant Capacity

1,320 MW

Plant Capacity / Availability Factor

85.00%

Annual Energy Output of Plant

9,030,627,936 kWh

Calorific Value of Sub-Bituminous Coal (LHV)

5,670 kCal / Kg

Price of Coal

USD 120.00 / Tonne

Exchange Rate

PKR 98.64 per USD

Gross Thermal Efficiency of Plant

43.40%

Conversion Factor— Btu per kWh

3,412.14 Btu / kWh

Conversion Factor — Btu per kCal

3.97 Btu / kCal

Heat Rate

7,862.08 Btu / kCal

Heat Value Required per Annum

77,274,158 MMBtu

Annual Coal Consumption

3.4366 Mtpa

Cost of Fuel

PKR 4.5045 / kWh

5.4 Cost of Fuel for the Project has been computed based on the assumptions tabulated

overleaf. The requirement for coal per annum has computed in line with the general practice

of computing the annual energy produced from heating coal required in order to achieve the

energy output of the plant based on the thermal efficiency of the same. The calorific value

of the imported sub-bituminous coal, price of the imported sub-bituminous coal, thermal

efficiency of the plant, and other plant parameters have all been based on the values

contained in the PC-I Feasibility Study for the Project.

5.5 Cost of Ash Disposal, along with Cost of Limestone, has been discussed in the PC-I Feasibility

Study of the Project, however have not been quantified in the same. For the purposes of the

Petition, both these costs have been assumed in accordance with the Authority's decision in

the matter of Upfront Tariff for Coal Fired Power Projects dated June 26, 2014.

Consequently, based on the net energy output of the Project, and the costs of ash disposal

and limestone at the indicated price of PKR 0.22 per kWh and PKR 0.09 per kWh respectively,

these costs are respectively computed as USD 0.020 Billion per annum and USD 0.008 Billion

per annum for the Project.

5.6 Variable O&M Costs have been assumed to include Spares & Maintenance, as indicated in

the PC-I Feasibility Study, where the bifurcation into Foreign and Local has been undertaken

on the basis of the foreign and local cost components provided therein.

Variable O&M Cost USD PKR Foreign Local Year 1 to 10

33,760,000

3,330,086,400

33,760,000

Year 11 to 30

33,806,602

3,334,683,200

30,380,000

338,000,000

5.7 The Capacity Charge, based on the availability of the plant, consists of fixed cost components

including Cost of Working Capital, Cost of Insurance, Return on Equity, Cost of Debt Servicing,

Fixed O&M — Foreign, and Fixed O&M — Local. The sum of these components results in

Capacity Charge at 100% Plant (Availability / Capacity) Factor, which in turn is tailored to

85% Plant Factor in accordance with the formula provided below.

Capacity ChargepF = Working Capital Cost + Insurance + ROE + Debt Servicing + Fixed O&M

Energy Output at 100% Plant Factor x Plant Factor

Page 12 of 21

Fixed O&M Cost

Year 1 to 10

Year 11 to 30

USD

8,500,527

8 505,556

838,492,000

838,988,000

Foreign

4,050,000

2,950,000

439,000,000

548,000,000

9 Page 13 of 21

ost C

o f ROE CC at 85% PF CC at 100% PF Insurance

C W

PKR per kWh PKR per kW per Month

Debt Service

Fixed O&M - Foreign Local

3.1297 1,941.9695 66.9663 132.2175 905.6237 779.5368 24.8535 32.7717

5.8 In accordance with the Authority's decision in the matter of Upfront Tariff for Coal Fired

Power Projects dated June 26, 2014, Working Capital equal to 01 Month of Fuel Charge

receivables amount and cost of 03 Months of Coal Inventory shall be allowed to the Project,

the cost of which has in turn be allowed to be secured through a short term debt facility for

which financing rate has been assumed at 1 Month KIBOR + 2.00%. The Working Capital shall

be adjusted subsequent to the introduction of blended coal for utilization in the Projecl un

pro rata basis, where the local coal inventory shall be allowed for only 01 Month.

Working Capital Requirement

Fuel Cost per kWh

Coal Inventory Requirement at 100% Output

Fuel Charge Receivables Requirement at 100% Output

Total Working Capital Requirement

Annual Cost of Working Capital

PRK 4.5045 per kWh

PKR 11,800,489,6;1S

PKR 3,933,496,549

PKR 15,733,986,198

PKR 1,924,266,512

5.9 Operating Insurance, for the purposes of the petition has been worked out as 1.00% of 70%

of Capital Costs including EPC Cost, Non EPC Cost, and Development Cost. This is in line with

the Authority's decision in the matter of Upfront Tariff for Coal Fired Power Projects dated

June 26, 2014. The resulting costs has been worked out as USD 9.880 Million, which shall be

subject to adjustments on the basis of actual costs incurred.

5.10 The Return on Equity percentage has been assumed at 27.20% for imported coal fired power

projects as per the Authority's decision in the matter of Upfront Tariff for Coal Fired Power

Projects dated June 26, 2014. However, the Project envisages the use of blended coal by

incorporating 20% of local (Thar) coal. It is requested to the Authority that the Return on

Equity percentage allowed to the Project be adjusted accordingly to 27.66% (27.20% x

80%+ 29.50% x 20%) so as to cater to the partial use of local coal, when applicable.

5.11 Debt Servicing Costs for the Project is driven from the various debt facilities arranged for the

Project. A detailed debt servicing schedule has been annexed to the end of this document as

Annexure B. Due to the difference in the terms of the various facilities secured, debt

servicing costs, catering to both the principal repayments and interest charge, does not

conform to the traditional cash flow stream, but rather varies in cost each year for up to 25

years. It is requested to the Authority that this be allowed as a pass through cost to the

Project, subject indexations provided in Section 6.

5.12 Fixed O&M primarily caters to the Administrative Expenses of the Project, which in turn

comprises of both foreign and local components. Since this is one of the first coal fired power

plants to be operated in Pakistan, the top level management shall consist of expatriates

having expertise of operating coal fired power plants. The dependence on foreign resources

for the O&M of the Project shall reduce after a period of 10 years, through indigenization.

1

•

6 INDEXATIONS

6.1 The Fuel Cost Component (FCC) shall be adjusted in accordance with the price variation of

the fuel consumed using international coal price indices for sub-bituminous coal. The coal

freight and the coal premium / discount shall be charged at actual, but will be subject to the

transparent tendering process with the coal suppliers. The FCC will be subject to foreign

exchange adjustment, load correction, and heat rate degradation factor. When utilization of

blended coal commences, the coal price of Thar Coal shall be subject to indexation based on

the coal price quoted by Thar Coal & Energy Board. Transportation of coal shall be charged

at actual.

6.2 The local components of Fixed O&M and Variable O&M shall both be quarterly indexed to

the WPI (Manufacturing) as notified by the Pakistan Federal Bureau of Statistics, whereas

the both the foreign components of the above shall be indexed to (a) the US CPI issued by

the US Bureau of Labour Statistics, and (b) the USD / PKR exchange rate based on the revised

TT & OD selling rate of USD as notified by the National Bank of Pakistan.

6.3 Cost of Working Capital component of the reference generation tariff shall be indexed to (a)

change in FCC due to fuel price variations, and (b) the 1 Month KIBOR rate as notified by the

State Bank of Pakistan.

6.4 The tariff component, Return on Equity, shall be quarterly indexed to the USD / PKR

exchange rate based on the revised TT & OD selling rate of USD as notified by the National

Bank of Pakistan.

6.5 The Cost of Insurance component of the reference generation tariff shall be quarterly

indexed to the USD / PKR exchange rate based on the revised TT & OD selling rate of USD as

notified by the National Bank of Pakistan, and the actual premium secured for each period.

6.6 The Debt Servicing cost component shall be adjusted in accordance with the applicable

indexations of (a) USD / PKR exchange rate based on the revised TT & OD selling rate of USD

as notified by the National Bank of Pakistan, and (b) the 6 Month LIBOR rate (or other

benchmark as applicable).

7 GENERAL ASSUMPTIONS

In addition to the assumptions made in this document above, the following general assumptions have

been taken into account for the computation of the Petitioner's generation tariff. Any changes in these

assumptions shall result in a change to the tariff proposed in this document.

7.1 Annual Plant Availability has been assumed to be 85%, along with an auxiliary consumption

of 8.12% resulting in a net capacity of 1,213 MW. Factoring in the annual plant availability

factor results in annual net output of 9,030.63 GWh.

7.2 The Power Purchaser shall be responsible for procurement, financing, construction,

operations, and maintenance of the interconnection, metering, and transmission facilities at

the Project Site.

7.3 All fuels and chemicals, consumables, and associated costs during the plants tests after

synchronization are assumed to be paid for by the Power Purchaser.

7.4 A constant Return on Equity of 27.20% has been assumed .ver the duration of the Project.

Page 14 of 21

7.5 No hedging costs have been assumed for exchange rate fluctuations during the construction

phase of the Project.

7.6 No political risk insurance has been assumed on debt and / or equity. The premium prevailing

at the time of financial close, based on the changes in the international and Pakistani macro-

economic scenario, including the geopolitical situation, would be charged as applicable.

7.7 Project contingencies, debt service reserves, and maintenance reserves have not been

included in the tariff computation. If and as required by the lenders, these facilities shall

need to be catered for, and the tariff adjusted accordingly.

7.8 An aggregate of 6% of the custom duties and other surcharge, federal excise duty etc. have

been assumed for reference purposes. Any increase therein would form part of the Project

Cost at the time of COD based on actual expenditure.

• 7.9 Any tax on any income of the Company, including sale proceeds received from NTDC, general

sales tax, and all other corporate taxes shall be treated as pass through items.

7.10 No withholding tax on supply of plant and equipment, or those on dividends, have been

assumed. Similarly, no taxes or duties, including stamp duties have been assumed on the

execution of the financing documents, loan repayment, interest repayment, agency fee,

commitment fee, upfront fee, and coal purchase or transportation.

7.11 It is requested that adjustments shall be made in the Project Cost, and subsequently the

tariff, on account of Letter of Credit (LC) confirmation charges and Standby LC charges on

the basis of actual expense at the time of COD, as applicable.

7.12 The Power Purchaser shall be responsible for the transmission and system studies. Further,

the cost of metering system, except for that of the backup meter, as well as the cost of the

Remote Terminal Unit (RTU) shall be borne by the Power Purchaser. In case the Company is

required to meet these costs, then they would be treated as part of the Non EPC Cost and

the tariff shall be adjusted accordingly.

7.13 No free start-ups are assumed.

7.14 The information pertaining to the plant gross efficiency of 43.40% (LHV) and start-up costs

shall be adjusted in accordance with the finalized EPC Contract.

7.15 The foreign currency applicable has been assumed to be US Dollars. In case any other foreign

currency applies, then indexation shall be provided in the applicable currency.

7.16 Additional coal (over and above the minimum take or pay) will be purchased through options

and / or additional quantity from coal suppliers and / or the spot market. Any additional

costs and / or premium paid in this regard shall be passed on to the Power Purchaser.

7.17 The Company has not assumed any security deposit that may be required by the coal

supplier pursuant to the Coal Supply Agreement.

7.18 No royalty or fees or payment to the relevant port authorities have been assumed.

7.19 If the Company is required to comply with an environmental regime more stringent than the

assumed regime then there would be an increase in the EPC Cost on account of FGD and SCR

to offset SOx and NOx emissions. The tariff shall need to be adjusted on account of such

costs become part of the overall Project Cost.

Page 15 of 21

1 1 1 1

•

7.20 All invoicing and payment terms are assumed to be in accordance with the 2008

standardized PPA specific to the coal power plants.

7.21 The Company has not assumed any costs that may be incurred for the Worker's Welfare

Fund or Workers Profit Participatory Fund. Any such costs shall be considered pass through

items in the terms and conditions of the PPA.

7.22 Any benefit / concession / incentives available to the other IPPs or projects, shall also be

made available to the Company.

7.23 Any additional costs incurred to cater for any modifications or additions required by the

Power Purchaser shall form part of the Project Cost, and subsequently the tariff, at the time

of COD.

8 DETERMINATION SOUGHT

8.1 The learned Authority is kindly requested to approve the Company's generation tariff, along

with the pertinent indexations, in accordance with the Project Costs and the assumptions

related thereto mentioned above, for a 30 years PPA term post COD.

The Petitioner would be pleased to provide any further information, clarification, or explanation that

may be required by the Authority during its evaluation process.

1 1

1

Page 16 of 21 1

rrq

I m • Annexure A - Reference Generation Tariff

Year Fuel Ash Limestone

Variable O&M

Foreign Local

P68 per kWh

EC Fiend ORM

Foreign Local WC Insurance ROE

P KR per kW per Month

Principal Interest CC CC 85%

PHR per

Tariff

kWh U54. per kWh

1 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 352.4817 694.8900 2,209.7926 3.5613 8.7446 6.8652

2 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 354.5049 666 8011 2,183.7268 3.5193 8.7026 8.8226

3 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 356.5817 638.6585 2,157.6611 3.4773 8.6606 11.7800

4 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 358.7142 610 4603 2,131.5954 3.4353 8.6186 8.7374

5 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 360.9044 582.2044 2,105.5297 3.3933 8.5766 8.6948

6 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 447.8747 549.8791 2,160.1746 3.4813 8.6646 8.7841

7 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 450.1867 505.4633 2,118.0709 3.4135 8.5968 8.7153

8 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 452.5632 460.9831 2,075.9671 3.3456 8.5289 8.6465

9 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 455.0064 416.4361 2,033.8634 3.2778 8.4611 8.5777

10 4.5045 0.2200 0.0900 0.3688 5.1833 27.4493 30.1640 132.2175 66.9663 905.6237 457.5190 371.8198 1,991.7596 3.2099 8.3932 8.5090

11 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 400.5029 330.1506 1,893.1085 3.0509 8.2348 8.3483

12 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 402.0367 297.4908 1,861.9844 3.0008 8.1846 8.2974

13 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 1312175 66.9663 905.6237 403.5973 264 8082 1,830.8604 2.9506 8.1344 8.2466

14 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 405.1790 232.1025 1,799.7364 2.9005 8.0843 8.1957

15 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 406.7841 199.3733 1,768.6124 2.8503 8.0341 8.1449

16 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 308.3459 166.8561 1,637.6569 2.6393 7.8231 7.9309

17 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 308.3459 135.0337 1,605.8345 2.5880 7.7718 7.8789

18 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 6E9663 905.6237 308.3459 103.2113 1,574.0122 2.5367 7.7205 7.8269

19 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 308.3459 71.3890 1,542.1898 2.4854 7.6692 7.7750

20 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 308.3459 39.5666 1,510.3674 2.4341 7.6179 7.7230

21 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 32.5325 14.9149 1,209.9023 1.9499 7.1337 7.2321

22 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 32.5325 11.7749 1,206.7624 1.9448 7.1286 7.2269

23 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 32.5325 8E349 1,2036224 19398 7.1236 7.2218

24 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 32.5325 5.4950 1,200.4824 1.9347 7.1185 7.2167

25 4.5045 0.2200 0.0900 0.3318 0.0374 5'.1838 19.9940 37.6534 132.2175 66.9663 905.6237 32.5325 2.3550 1,197.3424 1.9296 7.1135 7.2115

26 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 1,162.4549 1.8734 7.0572 7.1545

27 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 1,162.4549 1.8734 7.0572 7.1545

28 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 1,162.4549 1.8734 7.0572 7.1545

29 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 1,162.4549 1.8734 7.0572 7.1545

30 4.5045 0.2200 0.0900 0.3318 0.0374 5.1838 19.9940 37.6534 132.2175 66.9663 905.6237 1,162.4549 1.8734 7.0572 7.1545

1 Page 17 of 21

tc

1 1 1

Annexure B — Debt Schedule

ADB OCR Loan 1 ADB OCR Loan 2

Year °Wing Balance Prindpal Charge st theme Ciosirts Balance

840,000,000 35,199,998 80,225,762 804,800,002

2 804,800,002 35,199,998 76,828,328 769,600,003

3 769,600,003 35,199,998 73,430,895 734,400,005

4 734,400,005 35,199,998 70,033,461 699,200,006

5 699,200,006 35,199,998 66,636,028 664,000,008

6 664,000,008 42,000,000 63,074,514 622,000,008

7 622,000,008 42,000,000 59,020,758 580,000,008

8 580,000,008 42,000,000 54,967,002 538,000,008

538,000,008 42,000,000 50,913,246 496,000,008

10 496,000,008 42,000,000 46,859,490 454,000,008

11 454,000,008 42,000,000 42,805,734 412,000,008

12 412,000,008 42,000,000 38,751,978 370,000,008

13 370,000,008 42,000,000 34,698,222 328,000,008

14 328,000,008 42,000,000 30,644,466 286,000,008

15 286,000,008 42,000,000 26,590,710 244,000,008

16 244,000,008 44,000,006 22,488,695 200,000,002

17 200,000,002 44,000,006 18,241,902 155,999,995

18 155,999,995 44,000,006 13,995,109 111,999,9E9

19 111,999,989 44,000,006 9,748,317 67,999,982

20 67,999,982 44,000,006 5,501,524 23,999,976

21 23,999,976 4,799,995 2,200,608 19,199,981

22 19,199,981 4,799,995 1,737,322 14,399,986

23 14,399,966 4,799,995 1,274,036 9,599,990

24 9,599,990 4,799,995 810,750 4,799,995

25 4,799,995 4,799,995 347,464

26

27

28

29

30

Year Opening Balance PrIndpal Charge Interest.Charge Closing Solana

1 30,000,000 9,000,000 30,000,000

2 30,000,000 9,000,000 30,000,000

3 30,000,000 9,000,000 30,000,000

4 30,000,000 9,000,000 30,000,000

5 30,000,000 9,000,000 30,000,000

6 30,000,000 5,700,000 8,572,500 24,300,000

7 24,300,000 5,700,000 6,862,500 18,600,000

8 18,600,000 5,700,000 5,152,500 12,900,000

9 12,900,000 5,700,000 3,442,500 7,200,000

7,200,000 5,700,000 1,732,500 1,500,000

11 1,500,000 300,000 427,500 1,200,000

12 1,200,000 300,000 337,500 900,000

13 900,000 300,000 247,500 600,000

14 600,000 300,000 157,500 300,000

15 300,000 300,000 67,500

16 17

18

19

20

21

22

23 24

25

26

27

28

29

30

1

1

1

220,000,000

206,794,593

13,205,407

13,401,024

3,198,434

3,002,817

206,794,593

193,393,569

3 193,393,569 13,599,540 2,804,301 179,794,029

4 179,794,029 13,800,996 2,602,845 165,993,033

5 165,993,033 14,005,437 2,396,405 151,987,596

6 151,987,596 14,212,905 2,190,936 137.774,691

7 137,774,691 14,423,448 1,980,393 123,351,243

8 123,351,243 14,637,109 1,766,732 108,714,134

9 108,714,134 14,853,935 1,549,906 93,860,199

10 93,860,199 15,073,973 1,329,868 78,786,226

11 78,786,226 15,297,271 1,106,570 63,488,955

12 63,488,955 15,523,876 879,965 47,965,079

13 47,965,079 15,753,839 650,003 32,211,241

14 32,211,241 15,987,207 416,634 16,224,033

15 16,224,033 16,224,033 179,808

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Prfricipal Interest MIA ' Char Change pflance

ADB SF Loan IDB Loan

Year Open Balance PrkIcipal theme Irtteteat tha Closing Balance 1 29,894,790 1,494,739 8,856,331 28,400,050

28,400,050 1,494,739 8,407,910 26,905,311

3 26,905,311 1,494,739 7,959,488 25,410,571

4 25,410,571 1,494,739 7,511,066 23,915,832

5 23,915,832 1,494,739 7,062,644 22,421,092

6 22,421,092 1,494,739 6,614,222 20,926,353

7 20,926,353 1,494,739 6,165,800 19,431,613

8 19,431,613 1,494,739 5,717,378 17,936,874

9 17,936,874 1,494,739 5,268,957 16,442,134

10 16,442,134 1,494,739 4,820,535 14,947,395

11 14,947,395 1,494,739 4,372,113 13,452,655

12 13,452,655 1,494,739 3,923,691 11,957,916

13 11,957,916 1,494,739 3,475,269 10,463,176

14 10,463,176 1,494,739 3,026,847 8,968,437

15 8,968,437 1,494,739 2,578,426 7,473,697

16 7,473,697 1,494,739 2,130,004 5,978,958

17 5,978,958 1,494,739 1,681,582 4,484,218

18 4,484,218 1,494,739 1,233,160 2,989,479

19 2,989,479 1,494,739 784,738 1,494,739

20 1,494,739 1,494,739 336,316

21

22

23

24

25

26

27

28

29

30

1

1

Page 19 of 21

1

Interest Charge CM1osfn Blame 26,353,704 1106,599 1,246,691

24,247,105 2,209,488 1,143,802 22,037,618 2,317,402 1,035,888

19,720,216 2,430,587 922,703 17,269,629 2,549,299 803,990

14,740,330 2,673,810 679,479

12,066,519 2,804,403 548,887

9,262,117 2,941,373 411,917 6,320,744 3,085,033 268,256 3,235,710 3,235,710 117,579

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

24 22,037,618 19,720,216 17,289,629 14,740,330 12,066,519 9,262,117 6,320,744 3,235,710

30

_117.-u4A

Commercial Loan

Page 20 of 21

Annexure C — Capital Costs

Capital Costs* USD PKR Foreign Com nent tOta I COmPonent Land for Power Station & Colony 2,139,092 211,000,000 211,000,000

Site Preparation & Engineering 8,438,376 832,361,376 4,028,400 435,000,000

Handling of Fuel, Ash & Water 150,575,679 14,852,784,976 132,393,400 1,793,500,000

Thermal Power Station

Super Critical Boiler

Coal Fired Steam Power Plant

Unit Transformer Auxiliary Transformer

Other MV/LV Transformers & Equipment 1,026,041,032 101,208,687,384 949,943,100 7,506,300,000

AC / DC System

Control Equipment & System

Demi Water Treatment Plant

Emission Control Panel

Thermal Power Station Spare Parts

Civil Works & Structure 74,218,978 7,320,960,000 14,000,000 5,940,000,000

Residential Buildings 12,216,139 1,205,000,000 1,205,000,000

Vehicles 606,245 59,800,000 59,800,000

Erection Charges 78,382.361 7,731,636,048 27,488,200 5,020,200,000

Engineering & Consultancy 18,055,150 1,780,960,000 14,000,000 400,000,000

Training & Capacity Building 5,402,800 532,932,192 5,402,800

Administration & Management 6,932,786 683,850,000 683,850,000

Freight & Transportation 28,492,587 2,810,508,752 25,581,800 287,120,000

* Excluding Taxes and Duties

Page 21 of 21